The9’s Stock Price Rose 27.83% After Signing an MOU with Local Government

On the afternoon of June 10 Beijing time, the stock price of The9 Limited (NASDAQ: NCTY) rose sharply. According to Sina Finance, as of 4:57pm Beijing time, June 10, The9’s pre-market price was $1.47 per share, with an increase of 27.83 percent.

SEE ALSO: Faraday Future Signs Joint Venture with Internet Firm The9

On the previous trading day, The9’s stock price closed at $1.17.

The9 previously announced that it has signed a strategic cooperation memorandum of understanding (MOU) with the Development Group of the Shaerqin Industrial Zone in the Hohhot Economic and Technological Development Zone. The new energy vehicle joint venture between the two parties, Faraday Future and The9, will be established in the Shaerqin Industrial Zone.

According to the MOU, the Shaerqin Industrial Zone will reserve no less than 5,000 acres of land for the joint venture project and support the joint venture company to obtain vehicle production qualification. At the same time, The9 and the Shaerqin Industrial Zone will jointly set up a new energy industry fund, to which The9 and its subsidiaries will contribute no less than CNY 500 million. The government will contribute no less than CNY 1.5 billion and invest in industry-related investment and operations. The Shaerqin Industrial Zone will also coordinate a financing loan of CNY 4 billion for new energy projects, recommending local industry funds and banks to provide interest-free, discounted or low-interest loans.

According to The9, since the MOU is valid for three months, both parties will use their best efforts to reach an agreement within this period. The9 said that the introduction of FF’s technology into China can make positive contributions to the development of China’s new energy industry.

It has been almost two years since Jia Yueting, founder and CEO of FF, went to the United States to build cars after the LeEco crisis. Media reports said that Jia Yueting was about to return home to cooperate with the investigation. In response, on May 10, at LeEco’s annual performance statement in 2018, Bai Bing, Secretary of LeEco’s board of directors, said that the company had not received Jia Yueting’s itinerary.

Featured Image Source: The9 weibo